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be greedy. it is a reminder that every stock seems to have a price. >> this is the kudlow report. strong words today. the senate leaders on the lack of progress on the fiscal talks. that optimism from last week is fading fast. the markets didn't like it. the dow dropping 89 points. he is calling for middle class tax cuts only. he has a $30 billion temporary targ target.
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that is not rising above the fray. rural towns are seeing a drop indiana coi indiana coi in, income. it is a free market revolution. first up tonight. the count down continues.
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>> entitlements are off the table. i don't see how john by nor aoe going to take them out. you guys lost the election. president obama said he was going to raise taxes on the richest 2%. why is this a surprise? that is what happens at the end of the year. it is a little slow. we'll get over that. come january first, they will pass the tax cut for 98% of the people. >> i didn't think this was a mandate. i agree your man won. but jim, the basic deal was, okay, john boehner acknowledging
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what this was. putting this on the table and he said this a million times in return for some. modest reform. while the biggest stuff waits for next year. if the democrats say it is off the table and if harry reid is trading bars with mitch mcconnel, what is up here. senator durban said, it shouldn't be ps deal. i don't think there is a bar gain to be had. it is a win win for alabama. he is going to get the tax hikes or the rb ares will say no deal and he gets the tax hikes which is what he will prefer anyway.
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that is a big pot of money he can use for whatever he wants. they are still not going to be a deal. baker, democrats saying there is no problem with social security, even though the piece in the "wall street journal" today said they are $20 trillion in the hole. they said they are $40 trillion in the hole. how can democrats argue that with a straight face. i know that stuff inside and out. most of those shortfalls are in the 22nd century. we don't have a big problem with those programs. in fact most of the story is health care. the budget office may adjust their projections and the story disappears.
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i know people like to run aaround with that but it doesn't make sense. >> what me worry scenario. medicare no problem. medicaid no problem. i don't know, one trillion deficit no problem. >> markets are falli ining dean. take a look. i don't understand this. attitude. i'm not hearing it from the president. no, first of all, interest rates are low because we have had a weak economy. as far as the debt goes, listen to dean, i'm sure that he believes that the only real problem phafacing the country a the capitol gains. i think we do have a debt problem i think we have a big debt problem. the numbers in the 20s, 30s,
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look horrifying and we have a huge job and growth problem. i don't understand how taking dividends from 15-43 creates jobs that closes that. >> i don't see spending cuts. it won't matter. the economy collapsed and the housing bubble collapsed. make them pay zero taxes. the search goes inside out. none of it finds that it will create any of those jobs. the government has no choice. >> that is quite an experiment. that you are willing to run with 1 or 2%. from 15 to 25. we are going to taking it from 15 to 30. >> we have been there. >> you are taking the rate on
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capital which we have the world's highest rate on capital. and you are poi inggoing to mak higher? i would love to see spending reductions. the house and the senate rotes for $1.2 trillion spending cut. that spending cut would be good for this countorycountry. what happened to it. >> we have gone that route in the uk and they got a recession. we can go your path but they cut taxes there too. they got the recession. >> because they raised taxes. >> i got to get out of here. >> thank you. >> now, here is the question. has president obama put this s fiscal cliff plan on the table. one member of the senate says it is time for president obama to
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tell america what this man is. that senator is pat toomey of pennsylvania. he is going to join us here in 25 minutes. next up is the republican party about to lose it's soul and principles over the fiscal cliff debate. why is nobody talking ip t inin media about spending cuts. let's talk to brent great to see you on the show. thank you for coming. let me start with this thought. over this fiscal cliff debate. nobody is cutting spending. everybody is talking about taxes. is the gop losing it's soul and principles? >> no one is being serious in it's debate. the fellow from adi is making sound statements. but he is whistling past the
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graveyard. there is no problem that the obama budget calls for spending giving us a deficit of $1 trillion per year as far as the eye can see. tax cuts didn't cause this. it is spending that caused this. you go to spending. you have the cpo itself is saying the only way to do this is getting obamacare out of there. what are the republicans starting to say? this will destroy the republican party because the party will have lost it soul. what else differentiates it from the party? >> here is the problem. the republicans have been saying for two years that this tax increase would destroy jobs and hope for a recovery.
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either they were lying then or if they were going along with it. they were lying now. which is it? >> this is interesting to me. why is the media working with the democrats on this very point about taxes. why is their primary target about spending not the economy which is growing slowly. but their primary target is grover nor quist has never spent a time is being blamed for the problem. even republicans are blaming grover? >> what do you make of this? >> it is a jihad against him. and he has some sanity. this is sheer dishonesty. and this wreaks of a corruption and you know what i'm talking about. when a senator says that his
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pledge is out dated, since when is a commitment something that is out dated? it is kept or broken. when they blame, look, you said it at the gaining of this. the united states senators said that entitlements are off the table. they are the problem. they just said the solution is off the table. let's raise taxes. we know that if you raise taxes on the rich, ate days? >> yes, i do. it is interesting to me. lindsey graham peter king. they are all friends of ours. they are walk ago way from the pledge. i don't see what this hysteria. i can't pick up a newspaper and not see anybody blamie inine ii.
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this is ignoring any issues. i don't understand how the media plays this game. we made a commitment to the base that elected us. we said to the voters we will keep taxes low and not increase taxes. how dare anyone else keep us to the promises that got us ele elected. that the moment these people are are primed. they are going to be reaganites. the moment that they are challenged. >> i can tell you this. not one drop of revenue should be put on the table until we have massive across the board spending reductions and entitlement reform.
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that is what is missing. the gop should stand up and say not one drop of revenue until you show me good faith with the spending reduction you all talk about except when it comes time to do something about it. and step b is that the small business community should say not one pens penny until i know you are not going to screw me. >> a quiz. well the answer is coming up next. it is the energy boom that is the brightest spot in our dull and amenemic economy. does the republican party have a front-runner for 2016 could be.
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don't forget. free market capitalism. we are about to prove it again in 2:00 when the kudlow report comes right back. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. bp has paid overthe people of bp twenty-threeitment to the gulf. billion dollars
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this is another heartland state are in the middle of an energy boom. it is free market ideas at work in the fracking game. free market capitalism in oil, shale producing areas. here now we have tyson and dan m mitchell. dan, some numbers this is from the usa today article today. small town america.
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real income up 4%. metropolitan up. you think that has anything to do with the energy boom? >> i'm sure the energy boom has something to do with it. it is not just the direct benefit of lower energy costs it is the fact that manufacturing a key in put in the cost of energy. coming back and prospering and being competitive. this is a good story. but if we zoom out and look at it from the overall perspective. from much of the world's history, then we got free markets, private property and great things happen. as long as we give the market a little bit of brueathing room
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good things happen. jobs were created if the federal regulators who do not practice free market capitolism, if people go into the federal lands and continue this kind of work, we would be creating six figure j jobs and have a renaissance in this country's economy. voters in rural communities that are saying we want to see greater protections for our air and water quality. and people in rural communities from colorado to texas to pennsylvania and the state of new york have shown support to roll back. >> new york won't do it. pennsylvania has done it was great success. why do you talk about pennsylvania and texas?
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>> those states have employed hundreds of thousands of people with revenues coming into finance social purposes. >> absolutely. there is a lot of private property owners that benefit from it. but others have seen impacts on air and water quality. there have been towns that since the court rules the ban on towns weighing in on it. towns in delaware river basin have been voting to ban it. >> do you see a wave saying don't do this? roll it all back. tyson may find a gap. >> colorado, texas, pennsylvania they are passing these resolutions. but they want to see it heavily
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regulated. >> so dan mitchell, let's end this boom, right? >> tyson, and this pals would have us that this down. i'm glad there are people like tyson for years. we need to make sure that protection of the environment is part of government. so i like the fact that there is balance there. but let's not lose sight of the fact that this is a big success story. we don't need to have a regulates economy. we need to give the private sector enough breathing room and make sure that we don't brush this initiative. i'm optimistic for the first time in a long time. >> what did you say? free market unregulated economy?
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>> that is my fantasy. i can't believe it. that we are in agreement on protecting the environment. if the people don't want it, they won't do it. anyway, tyson, thank you. dan mitchell, thank you. now let's talk about california with crashing production and a 13% top state income tax rate. no kidding. no surprise. companies are fleeing the state. but where will they end up? we are about to show you.
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let's solve this. it is the free market at work my friends. cnbc joins us from los angeles with the details. >> but the weather is so nice. phoenix confist will tell you the grand canyon state figures has offered up to 100 california ceo's to check out the trips there. bar yry brooms says more than a dozen ceo's have taken advantage
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of it. but the trend in prop 30 plus the payroll tax increase that has been talked about we think it is going to force business and industry out of the state of california. many are are expanding in places like phoenix. we asked the president of the california business round table. >> i see it as a threat even though it sounds gimmicky. if i were them. i would be doing the same thing. they are going to do exactly the same thing and the question is why not? >> phoenix offered free trips to
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the first three that called. when 57 called they upped it to 100. stay tuned. >> many thanks. now back to our second quiz of the evening. what well-known politician could be the front-runner in 2016. president obama is about to head to pennsylvania for a campaign like trip to spell out it's solution. [ abdul-rashid ] i've been working since i was about 16. you know, one job or the other.
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the moment i could access the retirement plan, i just became firm about it -- "i'm done. i'm out of here." you know, it's like it just hits you fast. you know, you start thinking about what's really important here. ♪ ♪
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welcome back to the kudlow report. in this half hour, there may be a new gop front-runner for 2016. you know him well. stay with us to find out who it is. wall street is obsessed. washington stocks fell for the second straight day.
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>> they will place higher and higher taxes on small businesses and family farms and on every working family so that government may once again grow at the people's expense. >> that was the famous line from president reagan in 1984 and really nothing has changed. we put together some numbers for you. for 2012, it is going to come in at $3.7 trillion.
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at 11:00 am eastern time tomorrow, cnbc is going to show it live. president obama is heading back out on the road to sell his fiscal solution. meanwhile, not everybody is happy with his barnstorming. sitting down and working out an agreement, he is back on the campaign trail presumably with the same old talking points. what we don't know is if he can lead his party to a bipartisan agreement on bis issues like we currently face. to explain these mysterious incantations, we are pleased to
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welcome back senator toomey. there is about a month to go. how is this going to end? help us out. >> i sure wish i knew. i think the opportunity is still there to get something done. the tax increases that are scheduled to go into effect on january 1 will be devastating if they happen. we are working hard to find a way to avoid this. what we need is the president to offer a solution to the problem. the problem that we face is that which is underway and going to continue. if the president isn't willing to aggress the explosion in spending then that is what we are talking about. >> here is how we are going to
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replace the across the board sequester. i'm saying i don't see any spending. what do you think president obama is going to say at 11:30 am when he talkeds? >> one of the most compelling facts that we need to focus on is the social security program and mandatory health care spending. they are scheduled to consume all of the revenue within just ten years. that is how unsustainable this is. i don't see how you do that. john boehner said okay we'll give you revenues. you give us entitlements. what we heard today from mr.
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durban, who i think is pretty good on this stuff and others, they are off the table. now that seems to me to be an impediment and a barrier to a solution for something that is going to come due. larry, it is very disturbing. and this is the entire problem. it is a replay for what happened in the super committee. we tried to accommodate demands to try to persuade our friends to address the problems of spending. my hope is that the election is behind us now. can we avoid this massive tax increase? i sure hope we can. we have had them on the senate floor and the house has passed budgets. we have laid out ways that we can solve this fiscal problem.
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it is time that those on the other side offered ideas. >> you had a two part claim. can you review that maybe people ought to hear that? >> let me be clear. i don't think revenue is the problem. but the other side made that a precondition. if we are going to have revenue at all. it can only come in the context of pro growth tax reform. secondly, you have to agree to actually address the real problem here. i still think that is the solution that ought to be able to work even though we shouldn't have to part with more revenue. but you are hearing the same kinds of thing that is i'm hearing and so far it has been disturbing. >> every nickle should be
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designated toward debt reduction. mr. boehner has reached out and said that is going to cap debt reduction. why can't that be stipulated? earmarked towards debt reduction so it cannot be spent? well, as you know, we are running over $1 trillion deficit. even if it is a few hundred billion of revenue, it is going to reduce the total amount of borrowing. and it has to be mediate. it can't be a promise for future spending cuts. >> this last point. is it possible to have rules? >> a lot of famous economists
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say we should have rules on spending. why not have a cap on debt as a share on gdp. why not have that as our goal is to put it as 50 or 60%? >> well, the answer is you could. except we out to be progractica. but whatever laws congress sets congress can break. they have refused to do a budget. it is not a rule it is a law and it is the statute. so, i'm in favor of some of these rules, but i'm recognizing at the end of the day, what matters more is what you send to washington.
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>> well, we he have a little more than a month to go and nobody seap seems to know how s going to play out. many, many thanks for coming on. cyber monday was a record breaker this year. sales rising 30% compared to this year. mobile dievises played a big role. so that young children can completely waste their time and parent's money. oh, i'm sorry that was just a joke. i take it all back. now, moving on, we are about to reveal the possible republican front-runner for 2016. this revelation coming from our buddy robert costa. up next a front-runner already. two years ago, the people of bp made a commitment to the gulf.
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bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger.
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very chose to the white house where jeb bush's brother and father have served. he was coy. this is the guy to watch. even when i asked for that specificry. >> today as i understand it.
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he talked about charm schools and teachers needing to make choices through performance. he has the free market spirit. >> that is right. this guy was last in office in january of 2007. when it comes to being at the center of politics he wants to be there. >> he is first of all, a tax reformer. he is a pro growth guy and also, not only does he want to cut spending, but because he was a good governor of florida, he knows how to make a deal.
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he has also done a lot of work on immigration and is married to a spanish woman. he brings a lot to the table. education, he is a full package. >> i like that immigration part. his father used to call his son the little brown one and i just loved that. he would go to the hispanic latinos rallies and clubs and bodeg a bodegas and rallies. great reporting. thank you very much. now folks, shifting gears.
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i have another question for you? what company is spending more and more on electric cars even though they have become a huge profit loser? can you believe that? you think this conversation has anything to do with the bail out nation? i do. i think they do. anyway. kissy huggy stay seems to be ending in washington, d.c. where do we go from here?
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there is good news and there is bad news. let's go to the good news first. up eight months in a row. i'm giving you the year on year. you can see the nice pattern they have got.
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>> make it is because home prices are doing better. i don't know. but i like it. i got to give you badne news to. poor capital goods. today's number was a bad news number. this is a nasty number. we are falling now. about five, ten, percent. this is a three month change. you can't have recovery good business aren't investing and we
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county have income for consumers if businesses aren't investing. if this doesn't do better we have a problem. it closed down 89 points today. i know everybody in the world blames everything in the fiscal cliff but i'm not so sure. jeff, i want to get your take on these numbers. ko core capital goods. it is a recession signal if i didn't know better. i know you don't want to talk about the fiscal cliff, but that
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is a lot of what is weighing over what policy is going to be. regarding regulation and taxes. profits are slipping and many believe profits are going to continue to clip? the profits are or earnings clip. i'm worried. they are falling. earnings are flattening out. one of the biggest problems that i'm having is there doesn't seem to be a lot of fear or talk about it. if you look at the fear in the marketplace it is low.
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it tells me two things one people don't know what is going on or they are not drinking the kool-aide and feel nothing is going to happen. the earning's story is still in tact. look at what is happening in china. they are in the middle of a soft landing. by the time we get to the point where we see valuation become the story again, we could see the market again. >> i think it is a lousy way to determine the role in washington. it seemed to come around the time of the bickering. so maybe that is the case. i mean i got to believe. i may not like the deal because taxes may go up, but the fact
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is, some deal is probably going to be made. i ask you, if there is a compromise, whether it is great or not. what does that do to the stock market? >> it can be positive. you have a market where earnings are going to turn quickly. the s&p 500 formed price to to earnings ratio is 12. you can see them ricese a pointr two. powerful indeed. that is a positive scenario from
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what could result from washington to get together and make a long-term move. when we start talking about a once in a life time. >> coming back to this. we had senator pat toomey on. real smart guy. i said well, senator, what is going to happen. he said i don't know. i sa i said president obama is going to speak tomorrow what is he going to say? he said, i don't know. we are going to go through 30 days with no one knowing. >> that is why you have to go out there and buy insurance. you know me, but i will not go into this period without protection on my portfolio. they are almost giving you that insurance away for free. that is what i have been
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recommending to everybody. that is protection that i would love to see go off. so, i think it is that cut and dry to me. >> or jeff, kleintop. i hate to put this up. maybe the market has to fall a lot to get washington to do the right thing. maybe they have to take over. >> it could be larry that we need this bungee cord and it is so painful that they get together a deal. it is that type of thing, we saw it happen in august of 2011. and the market fell, i think 13% in a few days and washington got it's head together on that.
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i think it was last year, it wasn't until the 23rd of december and i think it was the 17th of the year before. >> i agree. bad bad bad in the short run. may be badder in the long run. jeff thank you. that is it for this evening's show. thank you for watching. we'll keep working on it. we'll be back tomorrow night. sfx- "sounds of african drum and flute" look who's back. again? it's embarrassing it's embarrassing! we can see you carl. we can totally see you. come on you're better than this...all that prowling around. yeah, you're the king of the jungle. have you thought about going vegan carl? hahaha!!
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The Kudlow Report
CNBC November 27, 2012 7:00pm-8:00pm EST

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

TOPIC FREQUENCY Us 8, Washington 7, Pennsylvania 6, America 6, Geico 4, Obama 4, California 4, Texas 3, Toomey 2, John Boehner 2, Cnbc 2, Cialis 2, Grover 2, Carl 2, Dan Mitchell 2, Indiana 2, Scottrade 2, Colorado 2, Durban 2, Phoenix 2
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on 11/28/2012